Samsung Reports on Contract Cancellation, New LoI

South Korean shipbuilder Samsung Heavy Industries informed that it has cancelled a contract for the construction of three special-purpose ships.

The contract, worth KRW 415.7 billion (USD 366.1 million), was secured back in July 2018 with an undisclosed North American shipowner.

Samsung said that the reason behind the termination was the shipowner’s inability to meet the shipbuilding price payment deadline.

However, the company has signed a Letter of Intent (LoI) with a new client interested in taking over the cancelled ships, hence, SHI expects the impact from contract cancellation to be limited. The new deal is yet to be finalized.

Earlier this week, Samsung won its first order this year for the construction of two liquefied natural gas (LNG) carriers.

The contract is worth KRW 419.9 billion (around USD 376 million) and has been secured with Denmark’s Celsius Tankers.